Telkom's ADSL modem bundle

kaspaas · Mar 2, 2004

Hi,

for those who don't read the "home page" regularly:

It seems as if Telkom has decided to bundle their super-dooper [

] ADSL modem worth R1500 into the "line rental" part of ADSL.

The catch is a Sentech-like 2 year contract!

My recent research has shown that you can get (in my opinion) far better value for your R1500 than the Telkom modems in the D-Link and Netgear ranges.

South Africa needs World Class Broadband at World Competitive Prices.

armitage · Mar 2, 2004

Seems telkom is getting geared up for a fight with sentech or more shall we say telkoms bludgeons an sentech takes it like a little girl.
The fact that they are taking these measures is quite interesting now if you take the recent rumours bout them starting to uncap also it seems that telkom know that if they dont start offering a little bit of good service then they might just loose their 15000 strong userbase

Proud South african rip offs.

microfast · Mar 2, 2004

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by armitage
......they are taking these measures is quite interesting ....<hr height="1" noshade id="quote"></blockquote id="quote">

Why all of a sudden a free modem added ... Sentech like ??

I think the Competition Commission should take a close look at this.

Have ICASA, Telkom, Govt. been cahoots all the time ?

This should be investigated - The govt. screwing its own laws ??

Something for the Scorpions [

]

Telkom is now in a catch22 situation - If it starts dropping prices,
increasing features etc. - this will be admission that they have been screwing us all along -
This could be very expensive for them.

Not one of us for one moment believes the spin coming out of the halls of Telkomia.

BTTB · Mar 2, 2004

Telkom is in a catch 22 situation. By dropping prices now they are admitting to acknowledging the competition, if you can call it that. Also if they drop prices they will be essentially only competing at this stage against Sentech. But Sentech is also a government owned company. I just dont like the idea that the competition is owned by the state. This is of serious concern. As they can easily form a Cartel. Their initial pricing structure points to some train of thought. Just we will never know the formula they used. Sentech would have to of tried a slightly different tact. They marketed the 128 connection pricing below Domestic ADSL and threw in the no cap with a modem etc. This will pull in a large croud im sure. Now the only thing telkom has done is offer a "free" modem.
IMO, I think telkom has to allow Sentech to gain between 40 to 60 percent of the broadband market per a behind closed doors agreement. Telkom is allowing Sentech to gain a portion of the market first. Once Sentech is happy, telkom will pretend to offer a better deal for ADSL customers to retain its portion. Perhaps in the next few months after Sentech has gained its market share, they will offer either a higher Cap Limit or drop it completely and then offer a 1mb connection for corporate clients with a static Ip at half of the current leased line pricing. Furthermore, I dont think they will drop ADSL line rentals as this stage as it would point to original monopolistic pricing and cross subsidisation of ISP charges. They will offer free or reduced ISP charges with the modem thrown in. As far as the cap goes, it will stay in force for the time being while Sentech is rolling out their business plan. You see guys its all planned in the boardrooms. You dont stand a chance. I think if the ANC really valued Internet Connectivity they would of made a different model for telkom. Its the fact that the majority of the ANC's votes dont come from Broadband Users. Their support base cant afford the luxury of the internet so they dont care. Their pricing is targeted at the leafy suburbs. One only need to look at the initial positioning of the Sentech Towers. They fall within or near these suburbs.
This might sound a bit blunt, but the facts speak for themselves. None of the pricing from telkom or sentech is aimed at the lower end of the market which I find shameful.

And if my figures are correct, I think Telkom is not worried about MyADSL and its 1000 plus members. The unhappy ones that is. They will lose a few customers, but they are not worried. As White suggested, telkom is looking for 40% of the market anyway. The few customers that are blowing off some steam will either jump ship or fizzle away. Just by judging the amount of posts on the MyWireless section of this forum, I think the transfer has begun already.

Another 2c

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

lewstherin · Mar 3, 2004

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Its the fact that the majority of the ANC's votes dont come from Broadband Users<hr height="1" noshade id="quote"></blockquote id="quote">

You've hit the nail on the head BTTB. The govt makes a killing on their share of Telkom (and probably Sentech too) - and so they have no incentive to deregulate. If they did deregulate to the extent of the USA, a lot of cash would disappear in the competitive fracas, so why do it?
The only other reason govt would look to deregulate would be if failing to do so could lose them power - newsflash ppl: most ANC supporters have no idea how to use a computer, so there'll never be a push from them on deregulation. Oh and of course deregulation implies privatisation - something that the ANC can't really do since their alliance b**** COSATU would flip on them.

Of course the govt is also too near sighted to realise that the upshot of cheap internet is cheap information access - the internet could be the single most powerful tool in reskilling our skilless millions. We only have to look at how telecom competitiveness has helped East European countries - countries that started from a position far worse than our own.

So us poor suckers - the "all I want for Christmas is a cheap broadband pipe" type [

] - are just gonna have to byt vas [

]

** How can Telkom claim to "Touch Tomorrow" when it can barely touch yesterday?
Because they're a BIG, GREEDY, MONOPOLY intent on keeping South Africa in the stone age. **

BTTB · Mar 3, 2004

<blockquote id="quote">quote:<hr height="1" noshade id="quote">most ANC supporters have no idea how to use a computer<hr height="1" noshade id="quote"></blockquote id="quote">

I dont think this is a true statement, but if you are referring to the masses of poor black people, I might agree with you. I just hope the ANC has the foresight to use the Internet as a tool to help these people in their plans/manifesto. Im all for uplifting the poor. Thats why I stated before and I quote myself, "None of the pricing from telkom or sentech is aimed at the lower end of the market which I find shameful." At least give the schools cheap ADSL or MyWireless connections. It would not only be a good advert for telkom and sentech, but those students that learn from it will later perhaps become potential customers for telkom and sentech. You see Microsoft doing this all over the world. Why, because they want everybody to use Windows. Its good marketing. But I stress to the powers that be. Do not cross subsidise this in your pricing, rather let it come out of the Dept of Education's budget. Its the only legitimate way.

<blockquote id="quote">quote:<hr height="1" noshade id="quote">h and of course deregulation implies privatisation - something that the ANC can't really do since their alliance beyatch COSATU would flip on them.<hr height="1" noshade id="quote"></blockquote id="quote">

You have a valid point here. If I was cosatu I would feel the same way. I also reckon if we had to go back in time and undo the telkom ballsup, I would of chosen a different model for our type of country with different needs to those in western countries. My plan would of excluded SBC and Telekom Malaysia. It would of been a South African Venture. Perhaps even of left telkom as it was. Rather used it as a tool to create employment, but this would of been worked around a completely different model. It would of been a friendly, cheap customer driven service with only SA interests at heart. The model would of been similar to South Korea. To use your telekom company to maximise the benefits for the people of SA. Its sole purpose was to provide the best and cheapest service to the public as a whole.
The fact that Telkom is partly owned by SBC and the State, it puts the state in a catch 22 situation. It has to honour its contract with the SBC consortium and at the same time provide services. SBC are business people with profit as their incentive. And this hardly helps SA development.
But in retrospect of all of the above of course. Its too late now. The only way out now is to throw the whole thing open to market forces. This will ensure competition and make it a more fair situation for all.

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

antowan · Mar 3, 2004

Good day BTTB and other members

A couple of interesting thoughts, which I found most interesting and happen to agree with. The big SOFT which you mention is sometimes too good at marketing, but I see the point. The thing is that we need to always make sure whatever we do (in business or in government) always is for the benefit of South Africa and its people. Things must be balanced in order for us to build a prosperous country where people can at least have an equal shot at the top. That doesn’t mean we will all get to the top, but we all need a fair shot. Telkom (in my humble opinion) has been given an unfair advantage. If that advantage is good for South Africa is another question…

Regards
Antowan

BTTB · Mar 3, 2004

<blockquote id="quote">quote:<hr height="1" noshade id="quote"> Good day

A couple of interesting thoughts, which I found most interesting and happen to agree with. The big SOFT which you mention is sometimes too good at marketing, but I see the point. The thing is that we need to always make sure whatever we do (in business or in government) always is for the benefit of South Africa and its people. Things must be balanced in order for us to build a prosperous country where people can at least have an equal shot at the top. That doesn’t mean we will all get to the top, but we all need a fair shot. Telkom (in my humble opinion) has been given an unfair advantage. If that advantage is good for South Africa is another question…

Regards
Antowan<hr height="1" noshade id="quote"></blockquote id="quote">

Totally!
Telkom has an unfair advantage and will try to hold on to it while it can. They have already laid out plans to challenge the R3bn story in court. The management is doing what management is supposed to do and that is make profits. This isnt going to help the general public. And Im sure we will foot the bill for the long drawn out legal battle that will ensue. I think this cocky attitude of telkom is going to eventually peeve off the powers that be and might be a blessing in disguise. The ANC might might just throw its remaining share to market forces, thus forcing share prices down initially and probably getting rid of some "wood" in the process. Telkom might of chosen the wrong path. And in my books they deserve whats coming to them.

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

lewstherin · Mar 3, 2004

Govt. subsidised internet for schools etc is something the USA has been using to great success...unfortunately seeing how the ANC has royally screwed up subsidised housing, welfare grants, education etc, I cant help but think that it aint gonna materialise...

Unfortunately, hoping that Telkom might peeve off the powers is a dead end. Like I said before, this is about cash for the govt and their ignorance that the Net may actually help ppl.
What you also need to remember is that keeping telecommunication costs high means that the govt gets to skim more money off the rich - since they are the only ones that can afford it. In fact Telkom is probably a very efficient way of "taxing" the rich without penalising (at least in monetary terms) the poor - something that things like VAT etc don't do.
The thing about this whole country is that the "masses of poor black people" that you mentioned are going to undoubtably vote ANC for no specific reason beyond the fact that the ANC promises to feed and employ them, and that the ANC keeps reminding them that they are the country's liberator (read "The Struggle")
Improving telecommunications does even figure in their heads...until they have the information at their fingertips, how can we expect them to make an informed decision?

** How can Telkom claim to "Touch Tomorrow" when it can barely touch yesterday?
Because they're a BIG, GREEDY, MONOPOLY intent on keeping South Africa in the stone age. **

doekvoet · Mar 3, 2004

A quote from Business Report

"Within a few short years Telkom has gone from a plodding, inefficient and much disliked parastatal monopoly to a plodding, litigious and much disliked private sector-controlled monopoly.

Its group strategic goals are "to increase shareholder value by increasing profitability and cash flows, while maintaining our market leadership in the South African fixed-line and mobile communications markets".

It achieves these goals by investing tens of millions of rands not in new technology but in legal fees, to ensure that no entrepreneurial-minded entity with the latest technology dares to encroach on its monopoly.

http://www.busrep.co.za/index.php?fSectionId=553&fArticleId=363421

BTTB · Mar 3, 2004

This should go to the news page.

Jeepers the more you read the more you realise how much we are being screwed.

<hr noshade size="1">You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.

Ditch · Mar 3, 2004

<blockquote id="quote">quote:<hr height="1" noshade id="quote">Originally posted by BTTB
This should go to the news page.
<hr height="1" noshade id="quote"></blockquote id="quote">
Yup, unfortunately it's an opinion piece (a brief but good one), so I guess it probably can't go to the 'news' page?
<blockquote id="quote">quote:<hr height="1" noshade id="quote">
Jeepers the more you read the more you realise how much we are being screwed.
<hr height="1" noshade id="quote"></blockquote id="quote">
Yes, I'm finding the same thing the more I read!

Telkom's ADSL modem bundle

kaspaas

Expert Member

armitage

Expert Member

microfast

Well-Known Member

BTTB

Executive Member

lewstherin

Senior Member

BTTB

Executive Member

antowan

Honorary Master

BTTB

Executive Member

lewstherin

Senior Member

doekvoet

Well-Known Member

BTTB

Executive Member

Ditch

Well-Known Member